Ally Financial joins the zero commission bandwagon

Ally Financial Inc.’s
ALLY,
+3.03%
online brokerage and wealth management arm Ally Financial Inc. said Friday it was jumping on the bandwagon by cutting commissions to zero, from $4.95 per trade, starting Oct. 9. “With continued advancements in technology making online trading increasingly more cost-efficient, it was inevitable our industry would reach a point where self-directed investors could participate in the market for little to no cost,” said Ally Invest President Lule Demmissie. Ally’s move comes after rival Charles Schwab Corp.
SCHW,
+2.13%
caused a stir earlier this week by dropping commissions, prompting fellow rivals E-Trade Financial Corp.
etfc
and TD Ameritrade Holdings Corp.
amtd
to do the same. Ally’s stock rose 0.3% in midday trading, and has gained 0.5% over the past three months while the S&P 500
SPX,
-0.02%
has slipped 1.9%. The stock had dropped 5.2% in two days after Schwab’s announcement, before bouncing 0.2% on Thursday.

View more information: https://www.marketwatch.com/story/ally-financial-joins-the-zero-commission-bandwagon-2019-10-04

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